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Feds' Bailout Plan Includes Tax Breaks For Bicyclists
New Tax Breaks Program Starts Jan. 1
UPDATED: 12:09 pm CDT October 10,
2008
MADISON, Wis. -- The federal government's $700 billion bailout passed almost a week ago, and there's more in the so-called rescue plan legislation than helping the nation's financial sector.
VIDEO: Watch The ReportOne measure of the legislation contains an incentive for bicyclists, WISC-TV reported.When Congress pushed the package through last week, lawmakers lumped in some other less high-profile projects. One of them gives a tax break to bicyclists if they ride to work.For Matt Logan, his life is something like that of a postman; no kind of weather gets in his way."I ride all year -- even through this winter. I've been riding for 10 years," Logan said.He said that he's committed to commuting on his bike through whatever Mother Nature throws at him."(The) first winter I was here, someone laughed at me thinking I'd be able to ride through the winter, but I've learned to deal with it."Other bicyclists are less committed."I'm just a summer rider," said Brad Herrick.But he and others said that they're no less excited about Congress's decision to extend fringe commuting benefits to bicyclists."In the past, if your employer offered a benefit, they could take out pre-tax costs for you to park in a garage, or to use a vanpool," said Robbie Webber, a bicycle advocate.Now if an employer signs a company up, it can put up to $20 a month back in riders' pockets."I think it's great. I think anything that's going to promote bicycle commuting is a step in the right direction," said bike commuter Carin Bringleson.The money can be used for anything from a place to park a bike in the winter to a new tube for a tire. Some cyclists said that it's a great way to pay them back and get more people riding, WISC-TV reported.Riders said that the money will surely help"Anything that would help me to commute to work on my wheels would be very helpful," Herrick said."It's definitely a fairness issue to all of this," Logan said. "It's kind of been a gripe that a lot of bicyclists has had."Some of the bicyclists said that this small action by the government might just make the world a better place."People who bike to work take fewer sick days, they're often are more productive, they feel better, and so it's good for everybody," Webber said.The new federal tax break starts on Jan. 1. The money can also go toward paying for bike gear, racks, day lockers and showers.Exactly how companies can sign up is still being worked out, officials said.The money to fund this project is relatively meager in comparison to benefits for some drivers. The government will spend about $1 million a year on the new tax breaks whereas it spends $4.4 billion annually for the parking and transit benefits.Stay tuned to WISC-TV and Channel 3000 for continuing coverage.For More Info:
- For more information on the bicycle commuter tax provision, click here: Bicycle Commuter Tax Provision To learn more about a local dedicated to making Madison a better place to bike, click here: Green Streets Madison
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